EUR/GBP stalls below 0.8800, awaiting ECB and BoE decisions

EUR/GBP bounced up from 0.8745, but remains capped below 0.8800.
Cooling UK inflation figures have boosted hopes of a BoE rate cut later today.
The ECB will, highly likely, stand pat and signal a steady policy for the foreseeable future.

Guillermo Alcala FXStreet

The Euro bounced up from the mid-range of the 0.8700s, and maintains a moderately bid tone in the British Pound on Thursday. Euro bulls, however, remain capped below the 0.8785-0.8795 area with investors looking from the sidelines ahead of monetary policy decisions by the ECB and the BoE.

The Pound came under pressure on Wednesday following a sharper-than-expected decline in UK consumer prices, which strengthened the case for a BoE rate cut later today, and fed hopes for further monetary easing down the road.

The Bank of England is widely expected to cut its Bank Rate by 25 basis points to 3.75% later on Wednesday, amid a deeply divided Monetary Policy Committee. A sticky inflation has forced the BoE to keep its benchmark relatively high compared to most of the world's major central banks, but Wednesday's CPI data cemented hopes for at least another quarter-point rate cut in 2026.

Across the channel, the ECB is expected to keep rates on hold for the fourth consecutive meeting. The main attraction of the event will be on the bank’s growth forecasts and President Christine Lagarde’s comments to assess the chances of a rate hike next year.

Economic Indicator

BoE Interest Rate Decision

The Bank of England (BoE) announces its interest rate decision at the end of its eight scheduled meetings per year. If the BoE is hawkish about the inflationary outlook of the economy and raises interest rates it is usually bullish for the Pound Sterling (GBP). Likewise, if the BoE adopts a dovish view on the UK economy and keeps interest rates unchanged, or cuts them, it is seen as bearish for GBP.

Economic Indicator

ECB Rate On Deposit Facility

One of the European Central Bank's three key interest rates, the rate on the deposit facility, is the rate at which banks earn interest when they deposit funds with the ECB. It is announced by the European Central Bank at each of its eight scheduled annual meetings.

EUR/USD softens below 1.1800 ahead of ECB rate decision

The EUR/USD pair loses ground to around 1.1785 during the early European trading hours on Thursday. The Euro softens against the US Dollar as Eurozone inflation declined well below target ahead of the European Central Bank interest rate decision. The German Factory Orders and Eurozone Retail Sales are also due later on Thursday.

GBP/USD falls toward 1.3600 ahead of BoE policy decision

GBP/USD extends its losses for the second successive session, trading around 1.3620 during the Asian hours on Thursday. The pair weakens as the Pound Sterling comes under pressure ahead of the Bank of England’s interest rate decision later in the day.

Gold falls on firmer USD; shows resilience below $4,800 amid dovish Fed, geopolitics

Gold attracts heavy selling following the overnight failure ahead of the $5,100 mark and dives to sub-$4,800 levels during the Asian session on Thursday. The US Dollar climbs to a two-week high and looks to build on its recent goodish recovery move from a four-year low, which, in turn, exerts some downward pressure on the commodity.

BTC steadies as bears shift focus toward $70,000

Bitcoin price remains under pressure so far this week, with the Crypto King slipping below $73,000 on Tuesday for the first time since November 2024. The price dip in BTC was fueled as the news came in late Tuesday that the US military shot down an Iranian drone that “aggressively” approached the USS Abraham Lincoln aircraft carrier in the Arabian Sea.

The AI mirror just turned on tech and nobody likes the reflection

Tech just got hit with a different kind of selloff. Not the usual rates tantrum, not a recession whisper, not even an earnings miss in the classic sense. This was the market staring into an AI mirror and recoiling at its reflection.

Top Crypto Losers: Zcash, Stacks, BNB drop further as Bitcoin weakens

Zcash, Stacks, and BNB (formerly Binance Coin) are among the biggest losers over the last 24 hours as Bitcoin approaches $72,000. The correction is driven by multiple factors, including massive, steady outflows from institutions and large-wallet investors, broader-market risk-off sentiment, and the delay in the Digital Asset Clarity Act.